Alex invests 50,000 today in a ten year project. At the end of the fifth, seventh, and
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Alex invests 50,000 today in a ten year project. At the end of the fifth, seventh, and ninth year he receives a payout of 22,000. Rather than keeping the payouts, Alex reinvests them into a fund that earns a 6% annual effective rate and receive a lump-sum payout ten years from today. What is the net present value of this project valued at an annual rate of interest of 5%.
A. 1,523 B. 4,267 C. -5,907 D. -1,523 E. -4,267
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Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
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